Australian Newsagency Blog

I was fortunate to see a presentation from Simon Coulter, a newsagent in Queensland, on the trial he has been participating in with News Ltd in the delivery of flat wrapped newspapers. Simon was speaking last week at the Queensland Newsagents Federation state conference. Simon has declared flat wrap a success and he’s sticking with the $15,000 flat wrap machine to prepare newspapers for his home delivery customers.

Simon compared the flat wrap machine to a half fold machine and the more traditional tightly rolled machine. The flat product, while slower to deliver, resulted is considerably superior consumer experience. The newspaper is delivered to the home as good as it was coming off the press.

The key issue is one of cost. Flat wrap is more expensive in terms of equipment needed and the labour required at various points along the way. The current newspaper home delivery fee structure controlled by the publishers does not provide enough for most newsagents to make money with the lower cost rolled model let alone coping with the higher costs of the flat wrap model. If the fee structure can be addressed consumers cold be closer to flat wrap newspapers arriving on their front lawn.

I’m glad that News Ltd has facilitated this trial. It’s now time for action of the delivery fee structure so that newsagents with larger deliver areas can make the move to a flat wrap model if they choose. It is anachronistic that publishers control the delivery fee newsagents are able to charge and that this fee is set at the state level.

The big questions about flat wrap home delivery of newspapers are:

Who owns the delivery package? Will newspaper publishers allow newsagents to deliver other items in the bag?

Where will flat wrap paper have to be delivered? Will the driveway or just inside the property be acceptable? Or, will a doorstop delivery be required?

Will newsagents be allowed to have overprinting on the bag?

Will newsagents be allowed to deliver more than one newspaper per package?

Will newsagents be allowed by newspaper publishers to charge more for the service?

I like flat wrap delivery of newspapers. As long as the rolled product is delivered I will not get my papers home delivered. As soon as my local newsagent bring flat wrap in I’m happy to sign up. To me, it’s all about the consumer experience.

Publishers ought to allow newsagents to generate additional revenue and to charge a premium fee and reward newsagents based on sales growth. The right commercial levers will see flat wrap as a success story in suburban situations where it’s use is most appropriate.

Will flat wrap sell more newspapers? I doubt it. However, it improves enjoyment for consumers and this will stem sales losses and facilitate switching casual purchase to home delivery.